1. Chevron processes crude oil into gasoline and diesel. Crude oil input 100,000 barrels, gasoline output 80,000 barrels, diesel output 20,000 barrels. Cost of crude oil $5,000,000.
   • Requirements:
     • Allocate joint costs using the physical units method.
     • Allocate joint costs using the net realizable value method.
     • Calculate the cost per barrel for gasoline and diesel.
     • Analyze the cost allocation methods and recommend the most appropriate one.